Why Some Banks Are Resisting One the Fed’s Tools for Calming Markets

The Federal Reserve is struggling to persuade some banks to use a lending tool designed to improve the central bank’s control over short-term money markets. The reluctance to tap the tool more aggressively makes it harder for the Fed to maintain a firm grip on rates as it winds down the shrinking of its $6.6 trillion asset portfolio. Find out more about the issues with the standing repo facility: